Car Loan Calculator Malaysia 2026

The Hire-Purchase (Amendment) Act 2026 ended the flat rate and the Rule of 78 for new car loans from 1 June 2026. Interest is now charged on the balance you still owe each month (the reducing balance method) and quoted as an effective interest rate, so paying early saves interest. Banks still upgrading their systems may keep offering the old loans until 31 March 2027. Loans signed before the change stay on their old terms.

On a new loan, each month's interest is the balance still owed times the effective rate divided by 12. RM90,000 over 9 years at 4.6% is RM1,019.28 a month and RM20,081.77 of interest in total. On an older flat-rate loan the interest is fixed at the start: RM90,000 at 2.5% flat for 9 years is RM20,250.00, so RM1,020.83 a month, which works out to an effective rate of 4.64% a year.

Nine years. Bank Negara has capped vehicle financing at 9 years since 18 November 2011. Banks usually lend up to 90% of a new car's price and about 85% for a used car, and many also limit the car's age at the end of the loan.

With a 10% down payment of RM6,000, you borrow RM54,000. Over 9 years at an effective rate of 4.6% that is about RM611.57 a month; over 7 years it is about RM753.12. Type your own price, down payment and rate above for your figure.

Yes. On a new reducing-balance loan you pay the balance still owed plus interest up to the next due date, so settling early saves all the interest after that. On an older flat-rate loan the refund follows the Rule of 78, which gives back less in the early years: RM90,000 at 2.5% flat over 9 years, settled after 36 instalments, gets a RM9,041.28 rebate and needs RM64,458.72. Banks have promised a goodwill discount on top for eligible older loans, so your bank's quote may be lower.